Neilson Corp. reported $145,000 of net income for 2011. In preparing the statement of cash flows, the accountant noted several items that might affect cash flows from operating activities.
1. During 2011, Neilson reported a sale of equipment for $7,000. The equipment had a carrying amount of $23,500.
2. During 2011, Neilson sold 100 Lontel Corporation common shares at $200 per share. The acquisition cost of these shares was $145 per share. This investment was shown on Neilson’s December 31, 2010 balance sheet as an investment at fair value with gains and losses in net income.
3. During 2011, Neilson made a correction of an error for ending inventory of December 31, 2010. The debit to opening retained earnings was $14,600.
4. During 2011, Neilson revised its estimate for bad debts. Before 2011, Neilson’s bad debt expense was 1% of its net sales. In 2011, this percentage was increased to 2%. Net sales for 2011 were $500,000, and net accounts receivable decreased by $15,000 during 2011.
5. During 2011, Neilson issued 500 common shares for a patent. The shares’ market value on the transaction date was $23 per share.
6. Depreciation expense for 2011 was $38,000.
7. Neilson Corp. holds 40% of Nirbana Corporation’s common shares as a long-term investment and exercises significant influence. Nirbana reported $27,000 of net income for 2011.
8. Nirbana Corporation paid a total of $2,800 of cash dividends to all shareholders in 2011.
9. During 2011, Neilson declared a 10% stock dividend, distributing 1,000 common shares. The market price at the date of issuance was $20 per share.
10. Neilson Corp. paid $10,000 in dividends: $2,500 of this amount was paid on term preferred shares classified as a long-term liability.
(a) Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume that no items other than the ones listed affected the calculation of 2011 cash flow from operating activities. Also assume that Neilson Corp. follows ASPE.
(b) Assume now that Neilson Corp. follows IFRS. What possible amounts might be reported?

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